Are You Running Out of Runway?

If you're running out of runway, your leverage goes down as you're trying to raise money. It could take three months more to actually get an investor to agree to put money in. You can see from here that probably at six months, maybe you can just about pull it off. But really you want to be thinking at 12 months runway. That's the point where you're thinking, ok, maybe i need to think about whether i raise money, or whether i'm thinking about getting to profitability.